Baker Hughes, the world's second-biggest oilfield services company by revenue, is moving the headquarters of its Surface Pressure Control Projects business to Abu Dhabi from Houston, Texas.
The move will bring the division's operations closer to oil producers and some of its most important customers, the company said in a statement on Tuesday. It also follows on from its decision to open a wellheads facility in Abu Dhabi last year.
“The Middle East is a key market for Baker Hughes, and the relocation of our SPC Projects headquarters to Abu Dhabi reflects our continued commitment to the region and focus on supporting the in-country value (ICV) requirements of the markets we operate in,” said Ayman Khattab, vice president of the Gulf, North Africa and India region for Baker Hughes.
“Abu Dhabi is the oil and gas hub for the UAE, and this move enhances our ease of doing business because of its strategic location and connectivity to other major markets in the region. This move will help us serve our customers better as we expect to achieve reduction in shipping time, delivery schedules and supply chain logistics.”
Baker Hughes generated $23.8bn of revenue in 2019. The company was acquired by GE in 2017, which merged its own oilfield services business into the company, but is now in the process of a separation. In July, GE said it will sell its remaining 37 per cent stake in the company over the next three years. As of September 30, GE was still the company's largest shareholder with a 33.8 per cent stake.
Baker Hughes employs about 68,000 employees and operates in 120 countries worldwide, according to its 2019 annual report.
SPC Projects is a part of the oilfield equipment segment of Baker Hughes. The business provides surface and subsea wellheads, surface pressure control equipment and offers subsea well intervention and related services. It has operations in the Middle East, Mexico, Singapore and China.
Moving the headquarters will "deepen collaboration with regional leaders for technology and R&D in the oilfield equipment space", bringing more operational experience to the UAE and enhancing local skills, the company said.